Levine Leichtman Capital Partners completed the sale of Regional Rail, LLC, based in Kennett Square, PA.
Buyer is UK-based 3i, an investment firm that announced the investment in April. Terms were not disclosed In a previous release, 3i indicated Regional Rail would be the platform for future investments in rail.
Formed in 2007, Regional Rail is an operator of short line railroads and rail-related businesses in the region. The company has more than 155 miles of track connecting into a Class 1 railroad network. The company carries 13,000 carloads annually while serving more than 70 customers
Regional Rail’s system includes the 110-mile-long East Penn Railroad, which has a route that runs from Elsmere to Coatesville, passing through Montchanin and Chadds Ford. Also listed as the Octorano, Wilmington and Northern, East Penn has a second line runs from Chadds Ford to Nottingham, PA. Regional rail also operates short lines in Pennsylvania
Customers including agriculture, lumber, energy and metal products. The company’s wholly-owned subsidiary, Diamondback Signal, provides engineering, construction, and maintenance for highway-rail crossings throughout the United States.
Lauren Leichtman, Founding Partner and Co-Chairperson of the Executive Committee of LLCP, said, “The Regional Rail investment has been very successful for both LLCP and the Company’s management team. We are proud to have enhanced the value of Regional Rail through multiple avenues including winning new customers, acquiring additional track miles and optimizing service levels and operations. We wish the management team continued success.”
Al Sauer, CEO of Regional Rail, commented, “We have truly enjoyed our partnership with the team at LLCP, who helped support our growth initiatives. We will truly miss working with them but are excited to enter our next phase of growth under 3i.”
